Economic development corporations all across the country have been bending over backwards to bring game studios, developers and publishers to their neck of the woods with loans and tax incentives. If recent reports of

Economic development corporations all across the country have been bending over backwards to bring game studios, developers and publishers to their neck of the woods with loans and tax incentives. If recent reports of 38 Studios' financial troubles are true, Rhode Island could be facing a hefty loss for offering the same incentive to Curt Schilling's studio.

WPRI of Providence, R.I. crunched the numbers on the investment deal that brought 38 Studios to their corner of the country and found that taxpayers could have to foot the bill for $112.6 million for the next eight years if the loans borrowed by the local EDC on behalf of the studio aren't paid back to the investors.

The EDC's $75 million loan came from private investors to entice 38 Studios to set up their home base in Rhode Island away from Massachusetts with interest rates on the "moral obligation bonds" ranging from 6 to 7.75 percent. 38 Studios agreed to pay back that loan with funds from the sale of their first game, Kingdoms of Amalur: Reckoning.

Not much is yet known about 38 Studios' finances or how far they are in the red based on statements from Rhode Island Governor Lincoln Chafee that he was working to "keep 38 Studios solvent." The $112.6 million is also just a worst case scenario since the original deal included $23.4 million be set aside in case the loan couldn't be paid back. Either way, if I lived in Rhode Island, I'd be saving the pennies I find in my couch for the next decade or so.